Dairy nutrition company Volac has today, 23rd December, 2024, announced that it is focussing its business on the Animal Nutrition sector after the sale of its Milk Replacer business in December 2023 and the demerger and subsequent sale of its Whey Nutrition business in November 2024.
It also published its financial results for the year ending 31 December 2023. Turnover for the calendar year was down £83.7m (22%) to £299.1m, with pre-tax profit of £22.7m, decreasing £12.1m from the previous year. This performance reflected challenging market conditions in both Animal and Whey Nutrition and steep cost inflation which persisted throughout the year. In addition, Volac incurred significant one-off costs in 2023 linked to the restructuring and divestments.
On the decision to exit the Whey Nutrition business James Neville, Volac, said:
“The family felt it was the right time for Volac Whey Nutrition to seek external investment, in order to accelerate its growth plans. Having looked at a range of options the sale to Arla Food Ingredients represented the best option to continue the tremendous work done by Volac over the last 30+ years”.
David Neville, Group CEO stated for the Animal Nutrition division:
“Similar to the Whey Nutrition business, the family felt now was the right time to exit the Milk Replacer sector. The sale to Denkavit means this business sits in an organisation highly focussed on this category which will allow it to grow to its full potential. Volac remains committed to the Animal Nutrition industry and has plans to grow its remaining product families: Feed and Forage Additives, and Feed Ingredients”
Key metrics for 2023 include:
Sales Development
- Sales decreased by 22% to £299.1m (2022: £382.8m), reflecting lower sales volumes in Milk Replacers and lower pricing across both Animal Nutrition and Whey Nutrition.
Profit and Cash Flow
- Pre-tax profit of £22.7m, down from £34.8m in the previous year.
- Cash flow from operating activities was £0.7m, down from £36.4m in the previous year.
Increased Investment in Sustainable Growth
- The Group invested £12m in fixed assets during the year, across our Animal Nutrition and Whey Nutrition sites.
Employees
- Employee numbers increased to 473 versus 468 in the previous year.
Outlook
Having completed its restructuring, Volac is confident in the future of its business and the industry. 2024 has been a strong year to date for Volac with growth achieved in all its key product families. With a focus on efficiency and sustainability we plan to continue developing innovative products as well as further strategic business development opportunities.
Press Enquiries
Melanie Hickey, Head of Communications
melanie.hickey@volac.com
07872 963661